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Posted On 11.10.11 by in Blog
Our clients may wonder: in light of our nation’s evolving financial crisis, will the insurance companies still have money to pay personal injury claims? In short, the answer is yes.
Individuals seeking compensation for personal injuries need to know what will happen to insurance coverage in these challenging times. At risk are companies who invested heavily in subprime mortgages and in derivative investments whose worth depended on them.
Large insurance company AIG survived for nearly a century before imploding over investments on a derivative security called a “credit default swap.” A CDS itself is a bit like an insurance policy, but a CDS can also be highly speculative. Recently, AIG took $85 billion from the U.S. government to keep it afloat. Meanwhile, it had this to say to reassure its insureds:
It isn’t unusual for people who are hurt on the job to try and handle the workers’ compensation process without legal help. They believe the process is a simple...Read Article